SoMedia Networks Files Financial Results for Fourth Quarter and the Year Ending December 31 2014

SoMedia Networks (TSX-V:VID), the pioneer of globally scalable video production solutions, today announced it has filed financial results for the year ended December 31, 2014.

SoMedia reported record sales growth with sales volumes reaching $970,654, an increase of 125% over the previous year, while revenue grew by more than 71% over the prior year. This growth was characterized by strong performance in three key areas: expansion of the corporate sales channel, increased order values and increased price per video.

Highlights:

• Sales increased 125% over the previous year totaling $970,654
• Sales backlog at year end was $990, 694, up 145% compared to the prior year
• Growth in average order size of 237% year over year and 32% over the previous quarter
• Sales to repeat partners increased by 64% over the same quarter in the prior year and by 127% year over year
• Total operating costs decreased by 10% over the prior quarter and for the full year costs were 24 % lower than 2013
• Completed integrations with more than 20 major SaaS marketing platforms including Marketo (NASDAQ:MKTO), Oracle-Eloqua (NASDAQ:ORCL), Salesforce-ExactTarget (NASDAQ:CRM)

“I am extremely pleased with what SoMedia accomplished in 2014 and even more excited about the momentum we carry in to 2015,” said George Fleming, the Company’s co Chief Executive Officer. “Improved sales and marketing performance has enabled us to add higher value partners, increase order size, and drive more repeat business. Furthermore, in the fourth quarter we completed our 20^th integration with a major online marketing platform, establishing SoMedia as the only provider of integrated video production, players and analytics to tens of thousands of customers of these platforms.”

Selected Financial Information

Note: the foregoing is a summary of certain financial information relating to the Company and should be read in conjunction with the Company’s audited annual Financial Statements for the financial years ended December 31, 2014, 2013 and 2012 including the notes thereto.

Sales Indicators

Note: The measures described in this table are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. They are provided to assist investors in determining the Company’s ability to generate profitability from its operations and to evaluate its financial performance.

Definitions

Sales: The dollar value of videos sold during the period. A video is considered sold when a client makes an order and provides a deposit. Revenue is not recognized until the video is completed and approved by the client.

Average Order Value - Repeat Sales: The total of all orders received from repeat clients in the quarter, divided by the number of unique orders made by these clients.

Average Order Value - New Sales: The total orders received from new clients in the quarter, divided by the number of unique orders made by these clients.

Backlog – the value of videos sold to date but still to be completed.

Further, the Company has received approval from the TSX Venture Exchange of a share based compensation arrangement whereby the Company will compensate its independent directors for their services during the quarter ended September 30, 2014 by way of 50% cash base and 50% shares in lieu of cash. Accordingly, the Company will issue a total of 18,750 shares to its independent directors as at October 7, 2014. All shares are being issued at $0.16 per share, being the closing price of the Company's shares on September 30, 2014 and the shares will be subject to a four month hold period expiring February 8, 2015.

About SoMedia Networks

SoMedia Networks, the creator of Scalable Video, has reengineered how businesses access video content creation, production and deployment. The cloud-based SoMedia Platform allows businesses, brands and media to easily order the production of custom video content at scale and volume, anywhere, on demand, with rapid turnaround, and at a fraction of current costs.

SoMedia provides Scalable Video as an integrated solution to corporate partners, as a resale solution through thousands of web marketing firms and directly to digital agencies and millions of SMBs across North America. To learn more, visit: www.somedia.net.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The measures described in the Key Performance Indicators table above are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. They are provided to assist investors in determining the Company’s ability to generate profitability from its operations and to evaluate its financial performance. For further descriptions of these terms, please refer to either the Company’s Management’s Discussion and Analysis for the period or to the ‘Definition of Key Performance Indicators’ section at the conclusion of this document.